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The Dunkeld House Hotel has been sold to a consortium of a UK based financial investor and hotel operator, on behalf of Downing LLP, following an investment period for the hotel which began in 2016.
Downing LLP, a specialist business property adviser, originally invested alongside management to acquire, refurbish, and reposition the hotel.
The initial refurbishment was completed in 2017 and additional sums have been invested over the course of the investment to further enhance the quality of the hotel.
Downing completed the rebranding and first stage of the value enhancement over its 6-year holding period, and the new owners will now take on the asset to invest further capital for expansion of the facilities to match growing demand for Scottish upmarket leisure offerings.
Dunkeld House is a full-service, four star Scottish country house hotel located in Highland Perthshire. Christie and Co said that as a result of the investment to improve the quality of the property and operations, the hotel has “consistently traded ahead of expectations” since the original acquisition.
Additionally, the new management expects the trading trends to continue, and for the hotel to continue to improve profitability post-expansion.
Mark Gross, Downing’s head of Development Capital, said: “We have really enjoyed working with the Dunkeld team over the last six years. We believe that together we have developed a compelling hotel proposition in a unique location offering exceptional value for money to its customers.
“As a result of our investment and the high level of collaboration with the management team, the hotel is performing well despite the economic pressures of Covid-19.”
Arnold Schnegg, CEO of Dunkeld House, added: “Now that the hotel is positioned as a high-quality leisure destination through strategic assistance and considered investment from Downing, Dunkeld House can look forward to a prosperous future under new ownership. We believe that this transaction represents a successful outcome for all parties.”
Jeremy Jones, head of Hotels Brokerage at Christie and Co, said: “Already highly profitable, there are a number of further asset management opportunities which the buyers are keen to undertake. Customer demand for hotels with such magnificent settings will never disappear and are likely to continue to grow in the years ahead. Many congratulations to all parties.”
